Sometimes great stock tips are right in front of us day in and day out. For example, if one spends any time with teenagers in the colder climate regions of America it is easy to see that many of them wear UGG boots. These boots have almost cult status among teenagers as a coveted wardrobe item. The boots cost over $100 typically, but despite the high cost, many teenagers own several pairs of these pricey boots.
Photos of female movie stars often show them wearing UGG boots too; at places like the Robert Redford Sundance film festival the streets are snowy and UGG boots provide much needed warmth. Starlets are also often are seen in pictures out and about Los Angeles in a sun dress and UGGs. It is an odd fashion look, yet seems quite popular nonetheless.
The parent company of UGG boots, Deckers (DECK on Nasdaq), had a profit increase of $3,000 percent in the past decade according to TheFool.org. This website often has great information about investing in stocks.
I have coveted UGG boots but have never owned them as they are quite expensive. They look comfy though with sheepskin lined interior which precludes the need for socks on even a very cold winter day.
I have noticed how incredibly popular these boots are. However, I never thought to look into the facts about the stock of the parent company of UGGs. I was surprised when I saw the article about the 3,000% increase in profit of Deckers. However, I was not completely shocked because I already knew how intensely popular UGG boots are.
Thus the lesson is, look around you and see which products are in vogue. If teenagers simply must own a certain product it may be a hot investment stock at the moment too. If you are the parent of teenagers you have a built in “market research tool.” Just listen to what products the kids are nagging you to buy and you may luck onto a hot stock idea.
Another way to do “market research” is to watch carefully when around teenagers. For example if you happen upon a gaggle of your kids and their friends outside relaxing and they are drinking Diet Coke, eating Taco Bell or McDonald’s takeout, and wearing UGG boots or Vans or Converse sneakers and Levi Jeans and a t-shirts by companies like Billabong and Ecko, you may want to research the stocks of companies that make these products. If the kids are all yakking on cell phones who manufactures them…Motorola, Apple, and so on.
Thus, if the teenagers are buying a product in masses the stock may be a good bet for strong growth in profits. So, what products do your teens clamor after? Share some information in a comment and perhaps you will give someone an investment idea.